An India-based global travel technology company has announced it is acquiring one of America’s most popular motel chains.
On September 20, OYO announced it would acquire G6 Hospitality, the parent company of Motel 6 and Studio 6, from Blackstone Real Estate in an all-cash transaction for $525 million.
The transaction is expected to close in the fourth quarter of 2024.
Prior to the acquisition, OYO entered the US market in 2019 and owned over 320 hotels across 35 states.
Motel 6 is a popular choice for truckers because many of its locations have truck parking. Of the roughly 1,500 Motel 6 locations, about 800 have truck parking, according to the company.
“The Motel 6 franchise network generates $1.7 billion in total room revenue, providing G6 with a strong fee base and cash flow. OYO will leverage its comprehensive technology suite, global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth,” Blackstone said in a news release.
“This acquisition marks an important milestone for a startup like us in strengthening our international presence. Motel 6’s strong brand recognition, financial strength and network in the US, combined with OYO’s entrepreneurial spirit, will help us continue to operate as a separate entity and chart a path to a sustainable future,” OYO International CEO Gautam Swaroop said.
“We are grateful for our successful partnership with Blackstone and position us well for this new chapter. OYO’s innovative approach to hospitality will enable us to enhance service and value for our guests while preserving the iconic Motel 6 brand that travelers have trusted for more than 60 years,” said Julie Arrowsmith, president and CEO of G6 Hospitality.
“This transaction marks a great outcome for our investors and the culmination of an ambitious business plan that has more than tripled our investors’ capital and generated more than $1 billion in gains during our holding period. We believe G6 is very well positioned for the future and look forward to continued success for the brand in the coming years,” said Rob Harper, head of Blackstone Real Estate Asset Management Americas.
